Lux introduction

PROJECT REPORT LUX

INTRODUCTION

Consumer is the king of any business activity. It is very important for any

marketing person to know how the consumer perceives different things and how

he behaves accordingly. So consumer research is imperative for the success of

any marketing effort. Hence an attempt is made in the present Chapter to study

the behavior and perception of consumer. First of all perception is defined as

the process of receiving, selecting organizing, interpreting, checking and

reacting to sensory stimuli or data.

Consumer behavior is defined as “behavior that consumer display in

searching for purchasing, using evaluating and disposing of product and

services that they expect will satisfy their needs”.

The study of consumer behavior is the study of how the individuals make

decision to spend their available resources like time, money, effort, etc, on

consumption related items. It includes the study of what they buy, when they

buy it, why they buy it, where they buy it, how often they buy it and often use

it.

As marketer, it is important to recognize why and how individuals make

their consumption decision, so that we make better strategic marketing decision.

If marketer understand consumer behavior they are able to predict how

consumer are likely to react to various information and environmental cues and

are able to shape their marketing strategies accordingly. With out doubt,

marketers who understand consumer behavior will have great competitive edge

in the market.

Consumer behavior is relatively new field of study in the mid-to-late

1960’s with no body of research of its own, the discipline borrowed heavily

from concepts developed in other scientific disciplines, such as Psychology

(study of individuals), Sociology (Study of groups), Social psychology ( study

OSMANIA COLLRGE, KURNOOL

PROJECT REPORT LUX

of how an individual operates in groups), Anthropology ( the influence of

society on individuals) and Economies.

The initial thrust of consumer behavior was from a managerial

prospective, marketing manager wanted to know the specific causes of

consumer behavior. They also wanted to know how people receive store and use

consumption related information so that they could design marketing strategies

to influence consumption decision. They regard consumer behavior disciplines

as an applied marketing science.

There are number of reasons why the study of consumer behavior was

developed as a separate marketing discipline. Marketers had long noted that

consumer did not act or react as marketing theory would suggest. The size of

the consumer market in every country is vast and constantly expanding. Large

amount were being spent on goods and services by millions of peoples.

Consumer preference were changing and becoming highly diversified. Even in

industrial markets, where needs for goods and services were always more

homogeneous than in consumer markets, buyers were exhibiting diversified

preference and less predictable purchase behavior.

As marketing people began to study the buying behavior of consumer,

they soon realized that despite a sometimes “mo too” approach to fact and

fashions, many consumer rebelled at using the identical product every one else

used. Instead they preferred differentiated product that they felt reflected their

own special new personalities and life styles.

So by studying consumer behavior marketing people will be able to needs

of different groups of customers more efficiently.


PROJECT REPORT LUX

INDUSTRY PROFILE

ABOUT THE SOAP INDUSTRY:

ORIGIN OF SOAP INDUSTRY:

History of soap dates way back from 2350 years. Soap manufacturing was started in North America. Early in the history of Europe colonies and of the republic. Some American companies with currently well known names were started 50 to 200 years ago. During middle ages, soap was made at various places in Italy, France, Spain, England and possible other countries.

Mankind knew about soap nearly 200 years back 70 A.D. when Mr.Pllny and Mr. elder evidentially discovered the soap when roasted meat over flowed on the flow in ashes. This lump like product was soap and had foaming and cleansing character. Since then 1192 A.D. that in the first time detergent was taken in London. It is in 1931 A.D. that in the first time detergent was discovered by Mr.Grency with the sulphated olive oil and almond oil. The wood consumption of soap in 1884 A.D. was said to be lakhs/ton per annum and it was in this year Mr.W.H.L. ever entered the field of the soap making in a big way.

SOAP INDUSTRY IN INDIA:

Soap industry in India began with M/S Godrej setting up their manufacturing unit in 1918 at Mumbai and M/S government soap factory in Bangalore. The industry stagnated due to the in informed price control. The industry soon recovered and experienced sharp ups wing during 1974.

PROBLEMS OF SOAP INDUSTRY:

Soap industry faces some problems in the case of raw materials. The major ingredients like soap ash, linear alkyl, benzene and sodium Tripoli phosphate poses number of series in terms of availability.

The demand supply gap to vegetable oil is 1.5-2 lakhs tons and is met through imports. In recent months, price of caustic soda has shown a rising trend. The contents of soda ash in the cheaper varieties of soap are quite high.


PROJECT REPORT LUX

FUTURE OF SOAP INDUSTRY:

The growth prospects seems to be enormous considering the fact that the per capita income consumption in India is as low at 0.30kg over the year we have M/S HUL, M/S TAMCO,LUX etc., leading the industry in the field of soap manufacture, growth of population, income

Consumption, expenditure increased in urban cities spread of education, growing degree of personal hygiene etc., has increased by the spread of audio-visual media, rising incomes and general consciousness about the health.

ABOUT THE BUSINESS:

Major players & market shares:

Hindustan Unilever ltd., (HUL) is the leader for the toilet soap industry in India with a 60% share in the market. Other major players from LUX is facing competition are Godrej soaps, Wipro, Procter & Gamble, Colgate Palmolive, Johnson & Johnson etc.,

Their market shares is as follows

COMPANIESMARKET SHARES

HUL 60TATA OIL MILLS 13

DOVE 07GODREJ SOAPS 05

NIRMA 08OTHERS 07

MARKET SCENARIO

Of the nearly 7 lakhs tons toilet soap, market for 500 tons comes from the premium segment, 3 lakhs tons won carbolic segment and the rest are from the batting or popular segment. There are 40 brands in the total toilet soap market. In the popular segment Liril, Cinthol, Palmolive, Lux international have been


PROJECT REPORT LUX

well established in the market. In the popular segment lux, rexona, hamam, santore have a strong presence while among the carbolic soap lifebuoy, Ok, nirma have proved their worth.

The important point is that the price of the soap between the various brands generally varies between 50 paise and rupee. The soap industry does not face serious problems to the raw materials front.

In recent times, the price of caustic soda have shows a using trend. This contents of soda ash is the cheaper varieties of soap in quite higher linear alkyls benzene, being an important input in manufacture of soaps the future of this soap industry is very much dependent on this input. It is capital incentives during the around in 700-800 cores.

SEGMENTATION OF SOAPS

The Following table lists the key brands of the main companies.COMPANY BRAND SEGMENTATIONGodrej soaps Cinthol Premium

Godrej no 1 PopularMarvel PopularLifebuoy(plus,gold,family,liquid) Carbolic

HUL Lux(international, PremiumDove PremiumFace washes,Shower gel) PremiumLiril,pears, PremiumJai,breeze Popular

P&G Camay Premium

WIPRO Santoor,baby soft PremiumWipro shikakai Popular

KS&DL My sore sandal soap PremiumMy sore sandal gold Premium

HENKET-SPIC Margo PopularCOLGATE-PALMOLIVE

Palmolive natural Premium


PROJECT REPORT LUX

COMPANY PROFILE

Hindustan unilever limited is the Indian established of the world’s most famous multinational company namely unilever limited. This is a very pros porous company is the FMCG segment i.e., the fast moving consumer goods. The company has very much well established R&D supports and a good marketing practices and network.

The main purpose of Hindustan unilever limited is to meet the everyday needs of people everywhere-to anticipate the aspirations of our consumer and customer and to responds creatively and competitively with branded products and services which raise the quality of life. H.U.L’s deep roots in local culture and markets around the worlds are its unparallel inheritance and the foundation for our future growth. H.U.L will brings its wealth’s of knowledge and international expertise to the service of local customer – a truly multi-local multinational. H.U.L’s long term success requires a total commitment to exceptional standards of performs and productivity, to working together effectively and to a willingness to embrace new ideas and learn continuously.

H.U.L believes that to succeed requires the highest standards of corporate behavior towards its employees, the consumers, the societies and world in which we live.

This is Hindustan unilever limited’s road sustainable, profitable growth for our business and long term value creation for our share holders and employees.

To realize this commitment which H.U.L has from the consumers, employees, the society and the environment, it has set for itself certain sacrosanct policies and principles. These policies and practices, has earned H.U.L the goodwill and trust of people across the country.

It is certainly H.U.L’s brands and its people, but also its support systems. H.U.L’s research centre is the largest private sector industrial research laboratory of its kind in India. H.U.L’s enviable reach in the remote heartland make its kind in India.

H.U.L understands the importance of savings for the future generation, the simple pleasures that our planet has continuously offered. Necessary measures that H.U.L has enforced in its factories for environment protection


PROJECT REPORT LUX

and pollution control, H.U.L has also taken up projects on energy conservation, watershed management, tree plantation and soil conservation.

LATEST INNOVATIONS BY H.U.L

These are some of the words that are often heard. In fact, the scientists at H.U.L’s research centre are the brains behind the 41 new products launched on an average every year. The following are some of the latest innovations:

SUNNY DAYS ARE HERE AGAIN:

Now you can go out in the blazing sun without worrying about losing your complexion. All you have to do is use H.U.L’s dove soap everyday. This new, patented technology called the ‘sun screen formula’ contain a combination of sunscreen ‘actives’, which are deposited on the skin as a protective layer, even as the soap washes away dirt and grime. This unique formula is the climax of long search for a product that’s easy to apply, safe to use, affordable and provides optimal protection from UV rays.

COOL CART

One of the most fascinating from the research centre has been the world’s first totally safe, non-corrosive, eutectic coolant that keeps ice cream at – 18 degree centigrade even under the most aggressive climatic condition.

HOT POTATOES

Scientists at H.U.L’s research centers plant tissue culture lab have been successful in creating micro tubers of potato. Farmers can now plant a full hectare with just 50 kg of this new potato micro tuber, as against a typical requirement of 2000 kg of conventional seeds.

BRANDS OF H.U.L

Hindustan unilever limited is India’s largest packed mass consumption goods company. H.U.L is the leader in home and personal products and food and beverages. It seeks to “meet everyday needs to people everywhere – to anticipate the aspirations of our consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of life. It is this purpose which inspires H.U.L to build brands. Over the


PROJECT REPORT LUX

past 70 years, it has introduced about 110 brands, most of which have become house hold names in the country.

Some of the HUL Brands are:

BEVERAGES BROOKEBOND SKINCARE

Taj Mahal Fair & LovelyRed Label Pond’s3 Roses ORAL CARETaaza PepsodentLipton Yellow Label Close-UpLipton Green Label HAIR CARELipton Ice Tea SunsilkBRU Coffee ClinicDEODRANTS FABRIC WASH

Axe SurfPond’s RinRexona WheelCOLOUR COSMETICS PERSONAL WASH

Lakme DoveANNAPURNA ATTA LirilKWALITY ICE CREAMS Lux


PROJECT REPORT LUX

MARKETING

HUL is present in home and personal care and Foods & Beverages

categories. HUL and group companies have about 40,000 employees, including

1425 managers.

For marketing HUL divides the country into four regions, with regional

branches in Delhi, Kolkata, Chennai and Mumbai. Headed by a regional

manager, they comprise regional sales manager and area sales manager, assisted

by dedicated field forces, comprising sales officers and territory sales in

charges.

In marketing, each category has a marketing manager who heads a team

of brand managers dedicated to each or a group of brands. The brand managers,

wherever appropriate, focus exclusively on brand strategy or implementation.

MANUFACTURING

Each division has a nation wide manufacturing base, with each factory

peopled by teams of production, engineering, quality assurance, commercial

and personal managers.


PROJECT REPORT LUX

OBJECTIVES

Objectives:

To find out factor that influence a person to buy a particular brand of

soap,

To find out the opinion about the LUX.

To evaluate the effectiveness of advertisement of LUX.

To know the awareness of the people towards different brands of toilet


PROJECT REPORT LUX

VALUES OF RESEARCH:

Research is not a substitute for creative, but research provides fact upon

which creativity can go to work. No research finding really tells the marketer

department exactly what to do. But what the finding do provide is information

that can be helpful in making a judgment or decision about the promotional

activities or to improve the image of the company or positioning of product.

“Results of research can some time be more helpful in indicating what

not to do than to do”.

So research methodology is adopted to study the consumer behavior.


PROJECT REPORT LUX

LIMITATIONS:

The study is limited to Kurnool district only.

The data is collected from questionnaire nature i.e., views, opinions, perception etc., may be changed time. So it is not convenient for longer period.

The time period given for the study is one month. So the study is undertaken only at Kurnool district, by keeping in view of time period allotted.

On few occasion’s consumer may be biased in giving information.

Samples size is restricted to 100 only due to paucity of time.


PROJECT REPORT LUX

RESEARCH METHODOLOGY

Need for the study:

I have undertaken this study because the I wants to know the reasons to buy different brands of soaps and particularly consumer opinion about LUX Soap, the factors affecting while purchasing a FMGC(FAST MOVING CONSUMER GOODS)i.e., toilet soaps.

Research Methodology:

The study conducted was descriptive in nature. Selection measurement technique was done after simultaneous consideration of other characteristics of research design.

Descriptive Research:

The descriptive research was carried out using questionnaire was considered as appropriate method.

This section explains how the data is collected i.e., from primary and secondary sources. It explains what methods used for collection of data and what the sample plan is. The preparation of this report involves several phases as follows.

Data collection:

Tools of data collection are as follows.

1. Primary data.2. Secondary data.

1. Primary Data:

Based on the objectives of the study, research approach, questionnaire development and sampling has been designed.Visiting the consumers in Kurnool District.


PROJECT REPORT LUX

Questionnaire Development:

A questionnaire is used to collect the data. It is the developed after a thorough discussion with Dealer and Project guide by keeping view of the objectives of the study.

Sampling Techniques:

Data collected on the basis of convenient random sampling technique.

Sampling Unit:

Since the study for perception of consumer were contracted while gathering the information.

Sample Size:

It is limited to 100 consumers.

2. Secondary Data:

The secondary data is collected from Company records. Many web sites.

Analyzing the data:

The data are tabulated according to the respondents responses using percentages, aggregated scores, which are essential for study, which helps in proper analysis of data and also graphs are used in the analysis for easy and quick interpretation.


PROJECT REPORT LUX

INTRODUCTION

Behavior is a mirror in which every one shows his or her images. Behavior is the process of responding to stimuli. Consumer behavior is to do with the activities of individual in obtaining and using the goods and services; it encompasses the decision – making process that precedes and determines purchases.

STANDARD DEFINATIONS

Professor Walter C.G. and Professor Paul G.W, “the process whereby individuals decide whether, what, when, where, how and from whom to purchase goods and services”.

Professor Bearden and Associates. Consumer behavior is “the mental and emotional processes and the physical activities of people activities of people who purchases and use goods and services to satisfy particular needs and wants”

THE CONSUMER BUYING PROCESS:

Understanding consumer behavior makes it mandatory to first understand the buying process. Goods many models of consumer behavior portraying buying process have been developed during the last three decades. These models treat consumer as a decision-maker. Among all these models, the one given by Mr. Howard and J.Sheth in their title THE THEORY OF BUYER BEHAVIOR is having sophisticated model which is the most comprehensive and, hence, largely accepted. In simple words, the buying process is made up of three stages namely, ‘input’-‘process’-‘output’.


PROJECT REPORT LUX

STEPS IN BUYING PROCESS:

The consumer buying process is a five steps activity. These five steps are

1. Need Recognition.2. Information Search.3. Evaluation and Intention.4. Purchases decision and5. Post purchases reaction.

1. Need recognition:

The starting point of buying process is the perceived want or a desire. Need recognition is the awareness of the want or a consumption problem without whose satisfaction the consumer feels restless and tension-charged. That is, he or she feels that a desire or want has arisen which has to be satisfied. Needs or wants arise either due to internal stimulus or external stimulus.

2. Information search:

A need aroused and recognized can be satisfied only when the product or services is available. Consumer interest is indicated in the consumer’s willingness to seek further about product or satisfaction, he searches relevant information. Consumer has many alternative sources of information to tap such as friends, relatives, neighbors, salesman, dealers, advertisements, packages and above all consumer organizations.

3. Evaluation and Intension:

It is consumer’s deep interest in the product or services that paves the way for evaluation and intention. The evaluation stages is the stages of mental trial of the product or a services based on the accumulated information and judges the relative worth of alternatives products or services from the angle of want satisfying potential. The final purchases depend on the relative strength of the positive intention to buy.


PROJECT REPORT LUX

4. Purchase decision:

It is the positive intention of the consumer that leads to a purchases decision. Decision to purchase implies consumer commitment for a product or a service. Practically, it is the last stage in the buying process because, it completes the exchanges process. Such a purchase may be a trial or adoption. Trial purchases are done when the consumer buys the products or service for the first time. This occurs mostly in case of consumer non-durables. In case of consumer durables, it is purchase adoption than trial because, consumer durable items cannot be purchased on trial basis.

5. Post-purchase reaction:

Post-purchase behavior or reaction stands for the behavior of a consumer after a commitment to product has been made. This post- purchase experience may be a set of positive or negative feelings. Positive feelings or satisfaction will result in repeat sales or at least recommending the products or services to other; on the other hand, dis-satisfaction or negative feelings creating anxiety and doubts. This stage of mind is called as ‘cognitive dissonance’. He tries to reduce it by going in for other alternative products or service in search of highest level of satisfaction.

A word of caution, at this level, is essential. The stages mentioned above are only a graphic description of a buying process. There is no specific pattern in which every adoption process must fit in. As consumer is unique creature, one may be quick; another may be slow to reach each stage or stages. It is consumer personality-speed-caution-difference-wavering-shyness-risk taking-jubilant-serious all follow these stages to make purchase.

1. PSYCHOLOGICAL DETERMINANTS:

Psychological have also provided certain clues as to why a consumer behaves this way or that way. The major psychological determinants internal to the individual are-motivation-perception learning-attitude and personality. Here is an attempt to explain and to know their implications in so far as consumer behavior is concerned.

A. Motivation:


PROJECT REPORT LUX

Motivation is the ‘why’ of behavior. It is an intervening variable between stimulus and response and a governing force of consumer behavior”, motivation refers to the drives, urges, wishes or desires which initiate the sequence of events known as behavior.”

B. Perception:

Marketing management is concerned with the understating of the process of perception because; perception because, perception leads to thought and thought leads to action. Perception is the process where by stimuli are received and interpreted by the individual and translated into a response.

C. Learning:

In behavioral science, learning means any change in behavior which comes about as a result of experience. Learning is the process of acquiring knowledge. Consumer behavior is a process of learning because, it is modified according to the customer’s past experience and the objective he or she has set.

D. Attitude:

The concept of attitude occupies a central position a consumer; behavior studies in particular and social psychological in general because; attitude measurements help in understanding and prediction way when presented with a given stimulus and the attitude towards people, place, products and things can be positive and negative or favorable or unfavorable.

E. Personality:

Very often, the word ‘personality’ is used to refer to the capacity of a person for popularity, friendliness or charisma. However, in strict sense, it refers to the essential difference between one individual and another. Therefore, personality consists of a mannerisms, habit and actions that makes a person an individual and thereby serve to make hem distinct from every one else.

The personality of an individual is either expressed in terms of traits or type. The personality traits may be-aggressiveness-honesty-anxiety-independence-sociability and so on.


PROJECT REPORT LUX

PRODUCT PROFILE

Lux is a global brand developed by Unilever. The range of products includes beauty soaps, shower gels, bath additives, hair shampoos and conditioners. Lux started as “Sunlight Flakes” laundry soap in 1899.

In 1924, it became the first mass market toilet soap in the world. It is noted as a brand that pioneered female celebrity endorsements.

As of 2005, Lux revenue is at 1.0 billion euros, with market shares spread out to more than 100 countries across the globe.

Today, Lux is the market leader in several countries including Brazil, India, Thailand and South Africa.

One of the most popular beauty products India in terms of soaps and body washes is LUX soap. For years, LUX has been one of the India top soaps that offer a way to gain smooth and fair looking skin without worrying too much on how old the user is. LUX soap came from one of the biggest corporation in the India today, Unilever. LUX is a personal care brand owned by Unilever. LUX is primarily made from synthetic surfactants, as well as some vegetable oil based soap ingredients, such as sodium palm kernelate. LUX is formulated to be pH neutral, with a pH that is usually between 6.5 and 7.5.

LUX products are manufactured in the Netherlands, Untied States, Germany, Ireland and Brazil. The LUX trademark and brand name is currently owned by Unilever. LUX’s logo is a silhouette profile of a dove, the color of which often varies.

LUX’s products include: antiperspirants/deodorants, body washes, beauty bars, lotions/moisturizers, hair care and facial care products.

In the US, LUX bar soap is currently produced in the cool moisture, exfoliating, sensitive skin unscented, nutrium nourishing, white, pink, calming night, pro-age, and energy glow versions.


http://en.wikipedia.org/wiki/South_Africa

http://en.wikipedia.org/wiki/Thailand

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Brazil

http://en.wikipedia.org/wiki/Laundry_soap

http://en.wikipedia.org/wiki/Unilever

PROJECT REPORT LUX

LUX soap was launched in the United States in 1957. , years after Unilever acquired soap factory De Duif (Dutch: The Dove) in The Netherlands, from which the English brand name LUX is derived.

LUX has been positioned throughout its history without referring to it as “soap”, but as a “’beauty bar” with one-fourth cleansing cream; they stress its moisturizing of skin while washing in contrast to the drying effects of regular soaps(which their advertising calls simply “soap”).

Advertisements reinforced the message by showing the cream being poured into the beauty bar. In 1979, the phrase “cleansing cream” was replaced with “moisturizer cream”. In 1979, a Pennsylvania dermatologist showed that LUX dried and irritated skin significantly less than ordinary soaps. As a result of the study, Unilever started aggressive marketing and won more than 24% of the market by 2003.

LUX has grown from a US-only soap bar into one of Unilever’s biggest gl brand, and #3 in the Anglo-Dutch company’s portfolio behind Knorr and Lir extend the brand across the complete personal care spectrum, and LUX now soap to shower gel, and from deodorants to shampoo-conditioners. LUX has for its marketing. In 2003 Ogilvy & Mather launched a series of ads for Dc women. The brand competes fiercely with Procter & Gamble’s Olay, Beiersd Neutrogena, all of which have a similarly broad product range.

MARKETING ADDRESS:-

HINDUSTAN UNILEVER LTD, 165/166, BACKBAY Reclamation,MUMBAI, 400020,

MANUFACTURED BY UNILEVER DEUTSCHLAND PRODUCTIONSGMBH & Co OH6 RHENANIASTRASSE 76102.68219.MANNHEM,

MANUFACTURING ADDRESS:-

HINDUSTAN UNILEVER LTD.,BAROTIWALA (H.P.) 174103M.L No.MHIM/COS/2004/35D)HINDUSTAN UNILEVER LTD,


PROJECT REPORT LUX

C-9, M.I.D.C.AREA, KHAMGAON, DISTRICT,BULDHANA, MAHARASHTRA 444303M.L No.MAMD/COS/1/2002.REGD.OFFICE:165/166, BACKBAY RECLAMATIONMUMBAI 400020.MADE IN INDIA.@HUL2007.

FINDINGS & SUGGESTIONS

Findings:

From my sample it can be inferred that 30% of people use LUX

Soap.

55% of people are satisfied with their present brand of toilet soap.

23% of people have stated that quantity of LUX Soap is excellent

& 42% have stated that it is good.

33% departmental stores, 42% super market, 15% General Stores,

10% Medical Shops.

Most of the people are satisfied with the present package of LUX.

50% of people have seen the advertisement of LUX products in

T.V, 10% Magazines, 10% Newspapers.


mailto:INDIA.@HUL2007

PROJECT REPORT LUX

SUGGESTIONS

Under the light of my study an earnest attempt is made to suggest the following to improve the image on the sales of LUX Soap.

The company has to give some discounts or offers at the time of special

occasions i.e., festivals.

Visual media is the best for LUX Soap because most of the respondents

well aware of TV programs, Ads give along with special programs in

popular TV channels to increase the sales.

During promotional programmers some discount offers while purchasing

large quantity of soaps and free gift coupons shall be introduced to

motivate the consumers.

Most of the people suggested that they would like to see more attractive

package for LUX Soap though the present packing is good quality.

Most of the people are satisfied with small sized LUX Soap.

Try to reduce the price so that middle class can buy the soap.

Increase the advertisements in rural areas.

This soap is suitable only in winter & makes skin oily during summer.


PROJECT REPORT LUX

BIBLIOGRAPHY

Marketing Management - Philips Kotler Marketing Management - C.N.Sonataki Marketing Management - Ramaswamy

&Namakumari

Consumer Behavior - Schiff man Research Methodology - C.R.Kothari

www.hul.ltd.com

www.dove.com

http://www.slideshare.net/anandganpaa/lux-soap


http://www.dove.com/

http://www.hul.ltd.com/

Education

Lux introduction